FINAL RESEARCH PROJECT ON COMPARITIVE STUDY & ANALYSIS ON E-BANKING SERVICES OF STATE BANK OF INDIA (SBI) & INDUSTRIAL

CREDIT & INVESTMENT CORPORATION OF INDIA BANK (ICICI)

Submitted for the Partial Fulfillment of Bachelor of Business Administration ( Finance)

BY SHWETA KHARBANDA

Research Guide Mr. AMJAD ALI (Finance lecturer)

GRAPHIC ERA UNIVERSITY (DEHRADUN)

TABLE OF CONTENTS

I II III IV V

ACKNOWLEDGEMENT PREFACE EXECUTIVE SUMARY CERTIFICATE OF DECLARATION INTRODUCTION

INDUSTRY PROFILE COMPANY PROFILE E-BANKING SERVICES RESEARCH DESIGN

VI

RESEARCH METHODOLOGY

RESEARCH PROCESS DATA COLLECTION TECHNIQUES DATA ANALYSIS

VI

FINDING,CONCLUSIONS &

RECOMMENDATIONS VII BIBLIOGRAPHY VIII ANNEXURES

ACKNOWLEDGEMENT

Presenting a project of this is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contribution made by various persons in this endeavor. I will remember all of them with gratitude. I am extremely gratified to my research guide Mr. Amjad Ali for his significant support extended for the successfully completion of the project as he supported me all through the project and devoted his precious time for me. I am really appreciative to the various respondents who took keen interest in my project and help me a lot in completing this project. I am always beholden to my God, for always being with me and showing me the right way, my family, for always doing favor to me and my friends and colleagues consistently helped me with encouragement, creative inputs and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitation and for realizing me my strengths and potential.

SHWETA KHARBANDA.

PREFACE

E-banking is a global component in the economy. The role of banks has been and continues to be shaped by a number of mega trend the globalization of financial markets, the rise of non bank competitors, the ongoing evolution and implementation of new technologies, and deregulation and disintermediation (i.e., the movement away from the middleman role played by banks between depositors and lenders).

The purpose of this report is to provide a straightforward approach to understand the e-banking services provided by the two banks and how they are different from each other which make one bank the best from the other . An effort is made to understand the expectations of the customers with the two banks.

EXECUTIVE SUMMARY

This report has all the details covering the level of e-banking services provided by the ICICI and SBI Bank to its customers. It includes the research on the customers expectations and requirements of ebanking services of the bank. The research is basically done on the comparative analysis of ebanking services of ICICI and SBI bank. It is done to know that which bank is better in providing the e banking services. I have reviewed various literatures on the net pertaining to the SBI & ICICI bank. Through the data analysis it was found that allover the e-banking service of SBI bank is the best as compared to ICICI bank. The SBI Bank has more customer satisfaction than the other banks. Through a small sample size also it was revealed and proved that the public sector bank that is SBI Bank is at a developing and progressing side than the ICICI Bank. The customers were more positive in their approach. Making this kind of report created enthusiasm and interest in this topic.

CERTIFICATE OF DECLARATION

I hereby declare that this project is my original workand have not been submitted in any form as a part of any other part.

Information derived from the published and unpublished data of other has been acknowledged in the list of references given in the bibliography.

SHWETA KHARBANDA

INTRODUCTION INDUSTRY PROFLE OF STATE BANK OF INDIA (SBI)

The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921. An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in

making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the

State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.

BRANCHES

The corporate center of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India.

ATM Services
SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance.
[[

The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR)

State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

Products And Services Personal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme

Other Services

Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques

COMPANY PROFILE
State Bank of India is an India-based bank. In addition to banking, the Company, through its subsidiaries, provides a range of financial services, which include life insurance, merchant banking, mutual funds, credit card, factoring, security trading, pension fund management and primary dealership in the money market. It operates in four business segments: Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group.

PRODUCT PROFILE
SBI offers Corporate and Retail Internet Banking Products and Other Value Added Services-: E-Ticketing Bill Payment eZtrade@sbi RTGS/NEFT E-Payment Fund Transfer Third Party transfer Demand Draft Cheque Book Request Account opening request Demat Account Statement

INDUSTRY PROFILE OF ICICI BANK

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors. With a change in the corporate structure and the budding competition in the Indian Banking industry, the management of both ICICI and ICICI Bank were of the opinion that a merger between the two entities would prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was approved by its shareholders, the High Court of Gujarat at Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve Bank of India.

Present Scenario

ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Branches & ATMs

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the UK subsidiary has established branches in Belgium and Germany.

PRODUCT PROFILE
Personal Banking

Deposits Loans Cards Investments Insurance Demat Services Wealth Management

NRI Banking

Money Transfer Bank Accounts Investments Property Solutions Insurance Loans

Business Banking

Corporate Net Banking Cash Management Trade Services FXOnline SME Services Online Taxes Custodial Services

COMPANY PROFILE OF ICICI BANK

ICICI Bank Limited (the Bank) is a banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. It operates under four segments: retail banking, wholesale banking, treasury and other banking. The Banks subsidiaries include ICICI Prudential Life Insurance Company Limited, ICICI Lombard General Insurance Company Limited, ICICI Trusteeship Services Limited, ICICI Prudential Pension Funds, Management Company Limited, ICICI Home Finance Company Limited and ICICI Securities Limited.

PRODUCT PROFILE
ICICI Bank is the one-stop shop for all your forex needs. Whether your destination is Paris, Mauritius or enchanting Rome, ICICI Bank offers the best of both worlds. They buy and sell the following :

ICICI Bank Travel Card Travelers Cheques Foreign Currency

E-BANKING

Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is webenabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The delivery channels include direct dialup connections, private networks, public networks, etc. with the popularity of computers, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication.

The E-Banking is an application that has been developed for a well-established regional bank operating primarily in south India. The bank has several branches in key cities and towns in the north. In the world of this competitive environment and technological development, the bank has been totally computerized in the last 3 years, and to increase its customer base has started planning, for a concept called as e-banking; with this concept the bank wants to move very nearer to the customers and increase its basic operational strategies. Through E-Banking the bank wants to introduce the core concept of IT based Enabled Services (ITES). The E-Banking services are executed only

upon the customer, and these e-banking services would fully integrate with the core banking solution that is already in usage. The major idea is to provide a series of services to the customer through the internet, and make the customer feel flexible in calling out simple tasks faster instead of making visit to the bank every time. The e-banking service is open only to savings bank. Customers and not for current account holders. The customer is privileged to use most of the system only as a viewing phase, the only online transactions the customer can do are chequebook requisition and fund transfer among his personal accounts. Wireless banking is a delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution's network(s) using cellular phones, pagers, and personal digital assistants (or similar devices) through telecommunication companies wireless networks. Wireless banking services in the United States typically supplement a financial institution's e-banking products and services.

Person-to-Person Payments
Electronic person-to-person payments, also known as e-mail money, permit consumers to send money to any person or business with an e-mail address. Under this scenario, a consumer electronically instructs the person-to-person payment service to transfer funds to another individual. The payment service then sends an e-mail notifying the individual that the funds are available and informs him or her of the methods available to access the funds including requesting a check, transferring the funds to an account at an insured financial institution, or retransmitting the funds to someone else. Person-to-person payments are typically funded by credit card charges transfer from the consumers account at a financial institution. Since neither the payee nor the payer in the transaction has to have an account with the payment service, such services may be offered by an insured financial institution, but are frequently offered by other businesses as well.

Banking Services through Internet:

1.

The Basic Level Service is the banks web sites which disseminate information

on different products and services offered to customers and members of public in general. It may receive and reply to customers queries through e-mail; 2. In the next level are Simple Transactional Web sites which allows customers to

submit their instructions, applications for different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts; 3. The third level of Internet banking service are offered by Fully Transactional Web

sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as Virtual banks or Internet only banks and may not have physical presence in a country despite offering different banking services.

The Indian Scenario: Internet banking, both as a medium of delivery of banking services and as a strategic tool for business development. At present, the total internet users in the country are estimated at 9 lakh. However, this is expected to grow exponentially to 90 lakh by 2003. Only about 1 percent of Internet users did banking online in 1998. This is increased to 16.7 percent in March 2000. - (India Research, May 29, 2000, Kotak Securities)

Cost of banking service through the Internet from a fraction of costs through conventional methods. Rough estimates assume teller cost at Re.1 per transaction, ATM transaction cost at 45 paise, phone banking at 35 paise, debit cards at 20 paise and Internet banking at 10 paise per transaction.

Plastic Cards as Media for Payment: There are four types of plastic cards being used as media for making payments. These are: 1. Credit Card 2. Debit Card 3. Smart Card 4. ATM Card

1. Credit Cards: The credit card enables the cardholders to: Purchase any item like clothes, jewellery, railway/air tickets, etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental, etc.

2. Debit Cards: A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. Thus it is like an electronic purse, which can be read and debited by the required amount.

It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but for getting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards.

3. Smart Cards: Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc.

4. ATM Cards: The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque . Internet banking in India The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are:

i) Information Only System: General purpose information like interest rates,

branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no

interaction between the customer and bank's application system. No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production systems of the bank through internet.

ii) Electronic Information Transfer System: The system provides customerspecific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the internet.

iii) Fully Electronic Transactional System : This system allows bi-directional

capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure. Avail the following services through E-Banking.

Bill payment service

You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customers for online bill payment.

Fund transfer
You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services.

Credit card customers

With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online.

Railway pass

This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is limited to Mumbai, Thane, Nashik, Surat and Pune.

Investing through Internet banking

You can now open an FD online through funds transfer.Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system.

Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts.

Recharging your prepaid phone

Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes.

Shopping
With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

Advantage of Internet banking

As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost." Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

Security Precautions
Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain

confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out. The advantages of Internet banking are obvious. Business people can access their personal and business account information while saving a trip to the bank. You can check your balance whenever you need to, even if the bank is closed. Not only that, but you can pay your bills online as well, which saves both time and money on postage. Another advantage of Internet banking is the ability to easily compare services offered by different banks. You can buy financial products and apply for loans online, and in doing so, you can compare your options to ensure that you get the best possible services. You can even buy insurance online through Internet banking services. Stocks and bonds and other investments can be managed with online banking from your home or office independent of a financial intermediary like a stockbroker.

SBI BANK

SBI offers Corporate and Retail Internet Banking Products and Other Value Added Services

E-Ticketing
You can book your railway, air and bus tickets online through Online. To book your train ticket, just log on to irctc.co.in and create an ID thereat if you do not have one. Submit your travel plan and book the ticket(s)-either

i-ticket (where the delivery of tickets will be made at your address) or e-tickets (wherein after successful payment transactions, an e-ticket is generated which can be printed any time. For an e-ticket, the details of photo identity card will required to be filled in)

and select State Bank of India in the payment options. You will be redirected to Internet Banking site of SBI (www.onlinesbi.com). After submitting the respective ID and password, you can select your account. After a successful debit, Railways will generate the ticket. E-ticket can be printed by you whereas the i-ticket will be dispatched by IRCTC at the given address. Service charges @ Rs.10/- per transaction shall be levied in addition to the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC's site; refund amount will be credited to your account directly within 2-3 days. For cancellation of i-ticket, you shall be required to submit your ticket at a computerized counter of Railways and on cancellation, the amount shall be credited back to your account. You can also book your Air ticket through the e-ticketing feature. Logon to Indian Airlines website to make a payment for an e-ticket through State Bank of India, you need to select SBI as the payment option. The payment request will be redirected to Internet

Banking site. The request may be processed based on values sent from the airlines website. Once a transaction is processed, an appropriate response will be sent to airlines site to update the status of the transaction. You can print the E-ticket immediately. To book bus tickets to destinations in Karnataka, log on to the KSRTC website. Provide details about the start and end points of your journey, date of journey and number of tickets. Verify availability of seats on the selected date and confirm the transaction. Select Online to make the payment. Provide your credentials and select the SBI account that will be debited for the payment. You are provided a KSRTC reference number for your e-Ticket.

SBI E-Tax
You can pay your taxes online through SBI E-Tax. This facility enables you to pay TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe Benefits tax. Click the e-Tax link in the home page. You are displayed a page with two links Direct Tax and Indirect Tax. Click the Direct Tax link. You will be redirected to the NSDL site where you can select an online challan based on the tax you wish to pay. Provide the PAN, name and address, assessment year, nature of payment and bank name. On selecting the bank name as SBI and submitting the form, you will be redirected to the Internet Banking site. After submitting the respective ID and password, you can select your account for making payment of taxes. After payment is successful you can print the E-Receipt for the payment. The E-receipt can be printed at a later date also and the same can be retrieved from: Enquiries > Find Transactions > Status Enquiries > Click on the respective transaction to print the tax receipt.

The Indirect Tax link is used to make Central Excise and Service Tax payments to Central Board of Excise and Customs. The online payment feature facilitates anytime, anywhere payment and an instant E-Receipt is generated once the transaction is complete. The Indirect Tax payment facility is available to Registered Central Excise/Service Tax Assessee who possesses the 15 digit PAN based Assessee Code. You can make CBEC payments using the Indirect Taxes link available in the Payments/Transfers tab. You need to provide your assessee code as registered with CBEC and select the minor heads towards which you intend to pay tax. Select the appropriate tax type and enter the tax amount. Select an account for debiting the total tax amount. You can use any of your transaction accounts to make the payment. If a payment is successful, CBEC provides a link to generate an E-Receipt for the payment. Internet banking customers can pay tax through site to site integration. For government agencies, which are not Internet-enabled, OnlineSBI offers the Government Tax Payment facility. This facility is available as a post login feature in the retail and corporate banking sites of the Online SBI portal. Please note that the cut-off time for OLTAS and CBEC payment is 8 P.M. IST. Any transactions created after the cut off time will be processed after 7 A.M. on the following day

Bill Payment
A simple and convenient service for viewing and paying your bills online.

No more late payments No more queues No more hassles of depositing cheques

Using the bill payment you can view and Pay Various bills online, directly from your SBI account. You can pay telephone,electricity, insurance,credit cards and other bills from the comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to https://www.onlinesbi.com/ with your credentials and register the biller to which you want to pay, with all the bill details. Once the bill is uploaded by the biller, you can make payment online.You can see 'how do i' to learn the steps for using the facility. You can also set up AutoPay instructions with an upper limit to ensure that your bills are paid automatically whenever they are due. The upper limit ensures that only bills within the specified limit are paid automatically, thereby providing you complete control over these payments. The e-PAY service is available in various cities across the country and you can now make payments to several billers in your region.

eZtrade@sbi

State Bank of India (SBI) in alliance with Motilal Oswal Securities Limited and SBI Caps Securities Limited (SSL) now introduces you to 'eZ-trade@sbi', a State-of-the-Art online trading platform predominantly to cater to every trading need (presently available to Indian Residents Only) and offers a truly world class experience of online investing anyplace, anytime. This service provides you with a 3-in-1 account which is an integrated platform of Bank Account, Demat Account and an Online Trading Account to give you a convenient and paper free trading experience under one roof.We provides online trading of shares of Companies listed on BSE and NSE. eZ-trade@sbi will let you trade from the comfort of your home or office through the Internet. Buying and selling of shares is now just a click away. So go ahead and enjoy your fast, easy and hassle-free online shares/securities trading experience with India's Largest Bank

RTGS/NEFT
You can transfer money from your State Bank account to accounts in other banks using the RTGS/NEFT service. The RTGS system facilitates transfer of funds from accounts in one bank to another on a "real time" and on "gross settlement" basis. This system is the fastest possible interbank money transfer facility available through secure banking channels in India. RTGS transaction requests will be sent to RBI immediately during working hours post working hours requests are registered and sent to RBI on next working day. You can also schedule a transaction for a future date. You can transfer an amount of Rs.2 lakhs and above using RTGS system. National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account with the other participating bank. RBI acts as the service provider and transfers the credit to the other bank's account. NEFT transactions are settled in batches based on the following timings 1. 11 settlements on weekdays - at 09:00, 10:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00, 17:00, 18:00 and 19:00 hrs. 2. 4 settlements on Saturdays - at 09:00, 11:00, 12:00 and 13:00 hrs. Please note that all the above timings are based on Indian Standard Time (IST) only.

In order to transfer the funds to an account with other bank, kindly ensure that the bank branch of the beneficiary is covered under the RGTS/NEFT payment system. It is recommended that you choose the Bank/Branch from the drop down option provided under the link "Add InterBank beneficiary". Please exercise care to provide the correct account number and name of the beneficiary.

E-Payment
You can pay your insurance premium, mobile phone bills and also you can purchase mutual fund units by coming from the biller's website and selecting state bank of India in the payment option.

LIC PREMIUM: For paying premium of LIC policy logon to www.licindia.com and register your policy details. When the premium is due select State Bank of India in the make payment option. SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online. Logon to www.sbimf.com and select the scheme in which you want to make investment in the payment option select State Bank of India. CCAVENUES: Enjoy shopping at the CCAvenue Shopping Mall and purchase from a wide variety of products and services through CCAvenue Certified Vendors. Make payments for your purchases using your Internet enabled SBI accounts.

Fund Transfer
The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other branches. To make a funds transfer, you should be an active Internet Banking user with transaction rights. Daily limit for Funds Transfer to own Accounts:

Between Accounts in the same branch: Rs.10 Lacs. Between Accounts across branches: Rs.5 Lacs.

Daily limit for Funds Transfer to PPF Accounts in the same branch or across branches :Rs.70000. This is subject to a ceiling of Rs.70000, by a maximum 12 deposits, during the Financial Year, for the Principal Amount. Just log on to retail section of the Internet Banking site with your credentials and select the Funds Transfer link under Payments/Transfers tab. You can see all your online debit and credit accounts. Select the debit account from which you wish to transfer funds and the credit account into which the amount is to be credited. Enter the amount and remarks. The remarks will be displayed in your accounts statement for this transaction. You will be displayed the last five funds transfer operations on your accounts. On

confirming the transaction, you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the funds transfer request. A reference number will be generated for your record.

Third Party transfer

You can transfer funds to your trusted third parties by adding them as third party accounts. The beneficiary account should be any branch SBI.Transfer is instant.You can do any number of Transactions in a day for amount aggregating Rs.5 lakhs. To transfer funds to third party having account in SBI,you need to add and approve a third party, you need to register your mobile number in personel details link under profile section. You will receive a One Time SMS password on your mobile phone to approve a third party. If you do not have a mobile number, third party approval will be handled by your branch. Only after approval of third party, you will be able to transfer funds to the third party. You can set limits for third party transactions made from your accounts or even set limits for individual third parties.

Demand Draft
The Internet Banking application enables you to register demand drafts requests online. You can get a demand draft from any of your Accounts (Savings Bank, Current Account, Cash Credit or OverDraft). You can set limits for demand drafts issued from your accounts or use the bank specified limit for demand drafts. You can opt to collect the draft in person at your branch, quoting a reference to the transaction. A printed advice can also be obtained from the site for your record. Alternatively, you may request the branch to courier it to your registered address, and the courier charges will be recovered from you. If you have any queries, kindly approach your branch, quoting the reference number generated for the request.

Cheque Book Request

You can request for a cheque book online. Cheque book can be requested for any of your Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque books with 25, 50 or 100 cheque leaves. You can either collect it from branch or request your branch to send it by post or courier. You can opt to get the cheque book delivered at your registered address or you can provide an alternate address. Cheque books will be dispatched within 3 working days from the date of request. Just log on to retail section of the Internet Banking site with your credentials and select the Cheque Book link under Requests tab. You can view all your transaction accounts. Select the account for which you require a cheque book, enter the number of cheque leaves required and the mode of delivery. Then, submit the same.

Account opening request

Online SBI enables you to open a new account online. You can apply for a new account only in branches where you already have accounts. You should have an INBenabled account with transaction right in the branch. Funds in an existing account are used to open the new account. You can open Savings, Current, Term Deposit and Recurring Deposit accounts of Residents, NRO and NRE types. Just log on to retail section of the Internet Banking site with your credentials and select the New Account link under Requests tab. You can see all types of accounts. Select the account and account type you wish to open and submit the same. Then, you need to select the branch and enter the initial amount to open the account. You can select any of your accounts for debiting the initial amount. Then, submit the transaction. Your new account opening request will be processed by the branch

Demat Account Statement

Online SBI enables you to view Demat account statement and maintain such accounts. The bank acts as your depository participant. In the third party site, you can mark a lien on your Demat accounts and use the funds to trade on stock using funds in your SBI savings account. You can view Demat account details, and generate the following statements: statement of holding, statement of transactions, statement of billing.

NEW SCHEMES ON E-BANKING OF SBI BANK

E-Payment of Motor Vehicle Taxes & Fees of West Bengal Govt SBI Fx Trade: Currency Future Trading Viewing of Tax Credit Statement (Form 26AS). Payment of 'National Permit' fee Request for a Gift Card online. Open Term deposit accounts online and get e-TDR/e-STDR receipts instantly. Access your pension slip through enquiry menu. Enquire about tax deducted on the interest earned by your deposits. Online NRI e-Z trade 3 in 1 account introduced. Transfer funds to any Bank from your SBI Account using RTGS/NEFT Facility.

Value Added Services

Online fee collection facility for Staff Selection Commission (SSC) and Union Public Service Commission (UPSC). Discover a Simple, Secure and Convenient way to pay all your Utility Bills at OnlineSBI. e-Rail reservation service using SBI accounts. Mutual Funds investments handled with SBI accounts. SBI e-Tax:Online payment facility for retail users and corporates. VISA Money Transfer. Use your 3-in-1 account to trade online

eZ-trade@sbi with MOSL. eZ-trade@sbi with SSL. NRIeZ-trade@sbi with SS

PROCEDURE FOR OPENING AN E-ACCOUNT IN SBI BANK

Arehaving an account on sbi? if yes then it would be easier for you open an ebanking account. go and meet your bank manager, he will give a form, just fill up. and after few day you will be link to ebanking. the Terms of service: OnlineSBI

General Information:
1. 2. You should register for OnlineSBI with the branch where you maintain the If you maintain accounts at more than one branch, you need to register at each

account. branch separately. 3. Normally OnlineSBI services will be open to the customer only after he acknowledges the receipt of password. 4. We invite you to visit your account on the site frequently for transacting business or viewing account balances. If you believe that any information relating to your account has a discrepancy, please bring it to the notice of the branch by e-mail or letter. 5. In a joint account, all account holders are entitled to register, as users of OnlineSBI, but transactions would be permitted based on the account operation rights recorded at the branch. (To begin with the services will be extended only to single or Joint E or S accounts only). 6. All accounts at the branch whether or not listed in the registration form, will be available on the OnlineSBI. However the applicant has the option to selectively view the accounts on the OnlineSBI.

Security: 1. The Branch where the customer maintains his account will assign: a) User-id & b) Password 2. The User-id and Password given by the branch must be replaced by UserName and Password of customers choice at the time of first log-on. This is mandatory. 3. Bank will make reasonable use of available technology to ensure security and to prevent unauthorised access to any of these services. The OnlineSBI service is VERISIGN certified which guarantees, that it is a secure site. It means that You are dealing with SBI at that moment. The two-way communication is secured with 128-bit SSL encryption technology, which ensures the confidentiality of the data during transmission. These together with access control methods designed on the site would afford a high level of security to the transactions you conduct. SBI will soon be implementing PKI/Digital Signature. 5. You are welcome to access OnlineSBI from anywhere anytime. However, as a matter of precaution, customers may avoid using PCs with public access. 6. There is no way to retrieve a password from the system. Therefore if a customer forgets his password, he must approach the branch for re-registration.

Banks terms:
7. All requests received from customers are logged for backend fulfilment and are effective from the time they are recorded at the branch. 8. Rules and regulations applicable to normal banking transactions in India will be applicable mutatis mutandis for the transactions executed through this site. 9. The OnlineSBI service cannot be claimed as a right. The bank may also convert this

into a discretionary service anytime. 10. Dispute between the customer and the Bank in this service is subject to the jurisdiction of the courts in the Republic of India and governed by the laws prevailing in India. 11. The Bank reserves the right to modify the services offered or the Terms of service of OnlineSBI. The changes will be notified to the customers through a notification on the Site.

Customers obligations:
1. The customer has an obligation to maintain secrecy in regard to Username & Password registered with the Bank. The bank presupposes that login using valid Username and Password is a valid session initiated by none other than the customer. 2. Transaction executed through a valid session will be construed by SBI to have emanated from the registered customer and will be binding on him / her. 3. The customer will not attempt or permit others to attempt accessing the OnlineSBI through any unlawful means.

Dos & Donts:

1. The customer should keep his/her ID and password strictly confidential and should not divulge the same to any other person. Any loss sustained by the customer due to noncompliance of this condition will be at his/her own risk and responsibility and the Bank will not be liable for the same in any manner. 2. The customer is free to choose a password of his own for OnlineSBI services. As a precaution a password that in is generic nature, guessable or inferable personal data such as name, address, telephone member, driving license, date of birth etc. is best avoided. Similarly it is a good practice to commit the password to memory rather than writing it down somewhere. 3. It may not be safe to leave the computer unattended during a valid session. This might give access to your account information to others.

INDUSTRY PROFILE OF ICICI BANK

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors. With a change in the corporate structure and the budding competition in the Indian Banking industry, the management of both ICICI and ICICI Bank were of the opinion that a merger between the two entities would prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was approved by its shareholders, the High Court of Gujarat at Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve Bank of India.

Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and

profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Branches & ATMs

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the UK subsidiary has established branches in Belgium and Germany.

Products & Services

Personal Banking

Deposits Loans Cards Investments Insurance Demat Services Wealth Management

NRI Banking

Money Transfer Bank Accounts Investments Property Solutions Insurance Loans

Business Banking

Corporate Net Banking Cash Management Trade Services FXOnline SME Services Online Taxes Custodial Services

COMPANY PROFILE

ICICI Bank Limited (the Bank) is a banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. It operates under four segments: retail banking, wholesale banking, treasury and other banking. The Banks subsidiaries include ICICI Prudential Life Insurance Company Limited, ICICI Lombard General Insurance Company Limited, ICICI Trusteeship Services Limited, ICICI Prudential Pension Funds, Management Company Limited, ICICI Home Finance Company Limited and ICICI Securities Limited.

Products and Services ICICI Bank is the one-stop shop for all your forex needs! Whether your destination is Paris, Mauritius or enchanting Rome, ICICI Bank offers the best of both worlds! We buy and sell the following : ICICI Bank Travel Card Travellers Cheques Foreign Currency

ICICI Bank Travel Card

ICICI Bank Travel Card has made travel abroad convenient and safe. Available in US Dollars, Australian Dollars, Canadian Dollars, Swiss Francs, Euro and Pound Sterling, the international traveller is in fact spoilt for choice. Features of this power-packed Travel Card:

Replacement Card SMS alerts for every transaction Online access Card enabled for Internet transactions

Travellers Cheques

When you travel abroad, you can opt for Travellers Cheques (TCs) as an alternative to cash. These are cheques issued to you that offer you the safety and security you need when on the move. Unlike cash, if your travellers cheques are lost or stolen they can be replaced within 24 hours, virtually anywhere in the world by most banks, service establishments and even by a large number of merchants. In fact, TCs are considered the safest form of currency. In addition, they make it easier for you to budget, track and control your travel expenses. Travellers cheques are recognised worldwide. In the U.S they can be used like cash at retail locations, hotels and restaurants. Outside the U.S they can be used like cash at many locations, or exchanged for local currency at banks, currency exchanges, and travel service locations

We offer you American Express Travellers Cheques in the following currencies: United States Dollar, Great British Pound, Euro, Australian Dollars, Canadian Dollars and Japanese Yen.

Travellers Cheques offer the following features:

Accepted at numerous merchants for shopping Signature-based security Replacement of TCs within 24 hours across the world Easier for you to budget, track and control your travel expens

Foreign Currency

Foreign Currency is issued to customers travelling to another country for leisure, business, education or any other purpose. According to FEMA guidelines, the maximum amount of currency that can be availed of for any purpose of travel is the equivalent of USD 3,000 We buy and sell most currencies, so wherever you are travelling, don't think twice before visiting ICICI Bank for your forex needs!

PROCEDURE FOR OPENING AN ACCOUNT IN ICICI BANK

ICICI Bank Online Banking Services provide the largest private bank in India right here at your desktops. Banking becomes a pleasure as the transactions and services become instant with ICICI Bank online Internet banking. The services provided are totally secure and unique. These cover online account transactions and operations, credit card and account applications and payments, share trading and investments through mutual funds, bill payments, statement generation and a virtual demo of each service Role of customer when using e-banking You can access ICICIBank.com only by using your User ID and Password. During the first login attempt, it is mandatory to change both passwords - login and transaction which would have been mailed to you by the bank. If you forget your password, you will have written to us using the "Email Us" option. The Bank will then issue a new password and send it to your mailing address as per our records. Kindly check with your branch that this address is updated... Make sure no one can see the account login name or password you are entering when you log on to ICICIBank.com. Logout of ICICIBank.com before moving on to other

Websites. Before leaving the PC please "close" the browser. Do not write your ICICIBank.com login name or password anywhere. Do not leave your login name and password such that someone sitting at your computer could see them. Never reveal your ICICIBank.com login name and password to anyone (no representative of ICICI Bank will ever ask you for your ICICIBank.com password). Notify ICICI Bank immediately if you notice any unusual account activity. Keep all documents that include your account information in a secure location. When you login you can view the date and time of your last log in

FEATURES OFFERD BY ICICI BANK

Balance enquiry and statement Transfer fund online Card to card fund transfer Use debit card online Prepaid mobile recharge Subscribe for mobile banking Link bank account to ATM Lock / activate debit cards /ATM Request a cheque book Stop payment

RESEARCH METHODOLOGY Meaning of research

Research in common parlance refers to a search of knowledge. One can also define research as a scientific & systematic search for pertinent information on a specific topic. Infact, research is an art of scientific investigation. The advanced learner dictionary of current nglish lays down the meaning of research as a careful investication as inquiry especially through search for new facts in any branch of knowledge. Redman & Mory define it as a systematic effort to gain knowledge.

RESEARCH DESIGN
A Research design is a framework or a blueprint for conducting the research project. It specifies thedetails of the procedure necessary for obtaining the information needed to structure or to solve the research problem. The type of research design used by me is Qualitative research here I focused on the understanding & expectations of the respondents. A major chunk of my research was based on the conclusive research design.

DATA COLLECTION TECHNIQUES

There are mainly two broad classification of the data collection technique that are as follows:

Secondary source: the data in the secondary source is already published and is in the form of government publication , census, personnel record, client history and service records. My source of data collection is also through the secondary data available from the site of sbi & icici banks. Primary data: the data which is not been published at all and is used by the researcher the very first time is known as the primary data. The major part of my project report is based on the primary data which I have collected through the questionnaires & personal interviews from the respondents. Sampling technique: I took the technique of random sampling as well as non random sampling technique. In random sampling I did not asked the respondents that in which bank do you have an account but in non random sampling I asked them that do they use online banking and then I made them to fill the questionnaire. Sample size: 50

DATA ANALYSIS

PERCENTAGE OF RESPONDENTS HAVING ACCOUNT IN SBI & ICICI BANK

27% 38%

SBI ICICI OTHERS

35%

Fig: 1.1

COMMENT: In the above pie chart there are 38% of the respondents who use SBI
Bank online services & 35%f the respondents use ICICI Bank online services. The respondents who use other online bank services are 27% which shows that there are more customers of SBI Bank.

INDUCED THE RESPONDENTS TO BEGIN E-BANKING

80% 70% 60% 50% 40% 30% 20% 10% 0% 76% EASY & QUICK 50% 26% 22% 18% TRADITIONAL ACCOUNT BRAND NAME ADVERTISEMENT 1 OPINIONS REFFERED BY FRIENDS

PERCENTAGE

Fig: 1.2

COMMENT: From the above chart it is clear that the major part that is 76% is of easy
& quick which made people to go for e-banking. The least part i.e. 18% which is referred by friends made people to go for e-banking.

AWARENESS ABOUT THE EBANKING SERVICE

80% 70% 60% 50% 40% 30% 20% 10% 0% 68% FULLY AWARE 28% 14% HAD AN IDEA NO AWARENESS

PERCENTAGE

1 OPINIONS

Fig: 1.3

COMMENT: more than half of the people were aware of the e-banking services
provided by the bank.

FACTORS CONSIDERED WHILE OPENING AN E-BANK ACCOUNT

5 FACTORS 4 3 2 1 22% 22% 18% 10% 6% 48% 10%20% 2% 5% 26% 26% 12% 10% 50% 12% 28% 0% 1% 6% 8% 0% 0% 0% 50% PERCENTAGE

MOST IMP IMP NEUTRAL NOT IMP LEAST IMP 86%

100%

Fig:1.4

COMMENT: There were 5 factors ( convience, easy to maintain bank transaction,

low service charge, safe & secure, better rates) out of which responends hasve to rank them according to their importance. The chart above shows the ranking of the respondents.

Fig: 1.5

Table showing main transactions preferred by respondents to do by net MAIN TRANSACTION PREFERED BY RESPONDENTS TO DO ON NET Order a cheque book Money transfers Credit fixed deposit on line Request a demand draft Checking your current balance Pay bills Request for stopping a payment on cheque Seeking product rate information Calculate loan payment information Download loan application form Apply for consumer loan Inter account transfers 1 2 3 4 5 6 7 8 9 10 11 12

COMMENT: The most common transactions done by the people on net were
checking the current balance, paybills and seeking product rate information

RATING OF E-BANKING SERVICE PROVIDED BY THE BANK

120% PERCENTAGE 100% 80% 60% 40% 20% 0% 1 2 3 RATING 4 5 Linear (EXCELLENT) GOOD 32% 34% 14% 12% 0% AVERAGE POOR 1 EXCELLENT VERY GOOD

Fig : 1.6

COMMENT: The average e-banking service rating of the banks were very good
(34%) that means that the customers are satisfied by their perspective banks.

THE BEST E- BANK SERVICE

18% 28% ICICI BANK SBI BANK OTHERS

54%

Fig:1.7

COMMENT: The best e-bank service is of SBI Bank comprising the choice of 54%
individuals.

FINDINGS
1. In the users ratio SBI Bank has more number of customers of e-bank account than the ICICI Bank. 2. More banks are connecting to the software companies to run the e-banking service. In these services SBI Bank is in the top in proving the service. 3. The services used by most of the customers are checking the current balance of there account, order a cheque book, and pay bills, online trading, seeking product rate information and interaccount transfers. 4. Most of the people feel safe while disclosing there details on net. 5. The most important factor that the people consider while opening an online bank account is convenience&easy and quick 6. The best e-bank service is provided by the SBI Bank.

RECOMMENDATIONS
1. The banks should advertise more of the e-banking services 2. They should reduce there service charge so that more number of customers can use it. 3. ICICI Bank should know the reason that why its e-bank is not progressing. 4. There should be customer satisfaction by providing plans on e-banking services.

CONCLUSION
Atlast I want to conclude that the best e-banking service is provided by the SBI Bank while comparing it with the ICICI Bank. That means the public sector bank is progressing thanthe private sector bank. This is a great achievement for the bank and for the nation. The respondents took keen interest in filling the questionnaires and made my research fruitful. banks should also look for increasing there online services.

LIMITATIONS
1. Errors while making calculations are likely to creep in. 2. The biggest limitation is the time. 3. The respondents can be biased in supporting a particular Bank.

BIBLIOGRAPHY BOOKS:
1. E-Banking in India 2. Money & Banking

Internet sites
1. www.sbibank.com 2. www.icicibank.com 3. www.wikipedia.com 4. www.ehow.com